Bitcoin (BTC) saw a heavy retracement after trying (but failing) to break above the $43,000 mark in the prior week on worsening risk sentiment and outflow of funds from short-term holder addresses. BTC faced headwinds from the strong moving average (MA 50) resistance zone at $42,000. The bulls came under pressure as the price fell below $40,000 to reach an intraday low of $37,700 on April 26. At the time of analysis, BTC/USD rebounded off lows to trade at $39,370 with a nearly 2% gain in 24 hours. Per glassnode data, the number of active addresses on the Bitcoin network has dropped to 15.6 million, about 30% less than the January 2021 high. However, per Santiment data, the market has been supported by long-term holders and recent whale accumulations of more than 40,000 BTC worth $1.6 billion from the recent dip. Following a six-week low, Bitcoin (BTC) has rebounded and might continue in the near term.
Key Levels
Resistance Levels: $45,000, $42,000, $40,000
Support Levels: $37,000, $35,000, $33,000
BTC/USD Daily ChartSince striking a recent low of $37,700, BTC buyers have dominated the daily chart, steering the price towards the horizontal barrier of $40,000. The rebound setting supports the action that is putting pressure on the $39,000/40,000 zone, a breach of which might lift bulls even more.
If sellers emerge, an initial support zone between $38,000 and the horizontal support zone at $37,000 could form. If the price breaks above $40,000, the test of the moving average (MA 50) barrier and resistance section of $42,000-$43,000 might speed up. On the other hand, both the buyers and the sellers are in command, and no sign of weakness is seen on each side.
BTC/USD 4-Hour ChartThe short-term outlook remains in a range, as the pair continues to trade sideways, edging closer to the $40,000 level, with mild bullish technicals backing the scenario. Bulls might consolidate if rejection occurs at the important $40,000 zone, with the Relative Strength Index (RSI) above its midline 50, before launching a new attack towards $42,000.
Although dips should retain support to sustain the bullish near-term structure off the recent lows of the April 26 collapse in preparation for a new assault above the 4-hour moving averages (MA 50). The return into the ascending trendline could provide support for BTC/USD once more. Solid support would most likely be found above the $40,000 mark.
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